Medici Living Group, the world’s largest co-living provider, is in negotiations to open its first UK locations in London.
The Berlin-based company, which has 1,200 living units worldwide, is looking at several buildings in Zones 2 and 3 between 20,000-160,000 sq ft for its new Quarters brand.
Quarters, which launched this year in Berlin and New York, is a co-living concept aimed at young professionals aged 23-35.
The model is similar to that of co-living provider The Collective, offering small rooms with an emphasis on shared community spaces and all service charges included in the rent.
Mischa de Munck, head of European expansion, said the brand differs from other co-living providers by targeting the general public who will stay at least 12-18 months rather than strictly “digital nomads” who prefer shorter stays.
He would not comment on forecast monthly rents on future London locations but said it would be cheaper than a studio for roughly the same size, factoring in shared space.
The model can offer returns of 10-15% or even 20% above those achieved on private rented accommodation through its effective use of space, according to de Munck.
He said: “If you live in co-living it overlaps with other people and then if you do the community management really well and you protect the sense of privacy, the feeling of the size of your apartment is actually a lot greater.
“We believe the professional generation which is coming of age now and taking key positions in companies go out to eat more, they don’t mind sharing a bathroom with one other person, they like to work at home or in the communal area more often.
“This is a change of a generation slowly coming and that’s why we are positioning our brand towards more of the general public that travels more, that eats out more and lives more on a rent basis and not necessarily on an acquisition basis.
“The UK is certainly an interesting market because it’s always been driven by buying your own home, and there is a change coming towards the younger demographic professionals that doesn’t necessarily want to live like that anymore.”
The group is looking for either new buildings or buildings with structural refurbishment potential within walking distance from Tube stations. It will partner with developers and investors on new locations, where it will agree a lease of 10-20 years.
In the UK, its main competition is The Collective, which opened London’s first co-living site at Old Oak in May 2016 and is building two more schemes, one in Stratford and one in Canary Wharf. WeWork is considering bringing its co-living concept WeLive to the UK, but has yet to announce any locations.
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